Should investors reduce their holdings of commodity related stock as volatility incre

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Asian Stocks started off on a negative note and fell for the fourth consecutive day and the lowest in March. All this has happened as oil retreated from a record and on the other hand, gold and copper prices dragged on commodities producers. Mitsubishi Corp which gets half its profit from commodities tumbled down in Tokyo when Gold and Copper metals fell in the day. On this occasion, some investors want to reduce their holdings of commodity-related stocks as volatility increases.
 
depends why you are investing in the commodities markets. is it for hedging purposes or speculative purposes. i assume it is not for arbitrage as you wouldnt be holding your commodities in that scenario for too long. the second question is how much risk are you willing to take. personally i love the volatility of the derivatives because it allows much more successful swing trading. volatility pretty much means you can reach the goal faster but with more risk...

ivan
 
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